Is the increasing interest in Bitcoin the gold of Bitcoin’s digital world in the
minds of investors? It brings up the question. We evaluated this question mark by opening some subheadings in our article.
Can Bitcoin Be Used Like Gold as a Storing Value?
Value storage tool literally means; money, foreign exchange, gold, such as objects that maintain their value over time and are therefore used for the purpose of accumulating value. However, considering the volume of use in the world, storability and value increase over time among the features of Bitcoin, the question of whether it can be a store of value has been the subject of curiosity by many people.
Gold has been used as an investment tool for many years, so in the long run, gold has proven to be a stable investment. It has shown that its value increases over time, and the price of gold usually rises when the economy is in recession. It is seen as a stable investment tool as it has been used as a form or support of currency for many years. But when you want to invest in gold, you need a physical item to store it safely.
Bitcoin, on the other hand;
It
is a new generation technology as a
digital currency
designed using blockchain technology. It has been able to prove its promisingness by the increasing use of people as an investment tool around the world. Unlike gold, Bitcoin is completely digital, so it can be easily and more quickly transferred to another user by eliminating the middleman. The way Bitcoin is stored can also be done through cold wallets such as Ledger or a reliable crypto money exchange with the return of the new generation technology.
It May Draw Your Attention: How is the value of Bitcoin determined?
Could Bitcoin Accessibility Be as Much as Gold?
We have talked about the use of gold as an investment, exchange and value tool for many years. Since the history of gold dates back to ancient times, humans have completed their evolution of access and all of humanity has knowledge about how to gain access to gold. However, although Bitcoin is a relatively new investment tool in gold, it has the potential to increase in value exponentially day by day. As interest in Bitcoin continues to grow around the world, we expect it to become widespread in its use as a medium of exchange in our daily lives, such as gold. For example, Starbucks serves its customers by receiving payments with Bitcoin at some points. This example can be extended further.
Can Bitcoin Replace Gold as a Reserve Currency?
Although thousands of years have passed since gold was discovered, it is still a metal with a high value. The fact that it does not rust like iron and that it is rare in the world has made gold valuable for many years. However, developing technology has affected people and states in every sense as well as money and is taking them to a different point in the means of exchange. According to many economists, gold; It is a product that has ruled the world economy for many years, used both in barter and as a reserve. Even today, countries collect gold against a possible crisis and want to have strong gold reserves. Because these reserves are of great importance in the monetary policies to be followed. It is seen as a source of confidence for the continuation of economic continuity. The dollar, which is the reserve currency all over the world, is in a position whose reputation is questioned in times of great crisis and pushes countries and even individuals to keep gold against such situations.
But where does Bitcoin fit into this cycle? What will be its position in the coming years? Or where should it be located if it has to be questioned by everyone?
First of all, we need to mention the central banks’ perspectives on Bitcoin. Central Banks are institutions that have the ability to intervene in economies first-hand and make studies and moves towards this. Although the cautious approach is considered normal by the whole world, it will be possible to say that the interest in Bitcoin and the development accordingly has increased clearly over time and that it has become more valuable worldwide with each passing year. Its increasing value causes people to use it as a means of storing value and investing. The function of being decentralized with its infrastructure that spreads to the base and is open to free use takes Bitcoin to a point where it will want to keep it among the reserves in states like individuals over time. It is useful not to overlook such a detail here. First of all, the reaction of the countries with strong gold and dollar reserves in the world is the increasing interest in Bitcoin in the weak countries. Its structure that can change the balances all over the world actually makes Bitcoin the biggest competitor to gold. It is currently seen as a way out in countries that are weak in dollar and gold and under economic dependence. Its increasingly grassroots structure makes Bitcoin available in all world markets, which gives Bitcoin a great power to become the main currency that countries will want to keep in their central banks at the moment. The fact that the countries that are at the top in the world in trade volume are also at the top in terms of Bitcoin circulation is a positive indicator of the transition from gold to Bitcoin. With its limited number, secure technology and accessibility, we can see Bitcoin as the reserve money and even safe haven of the near future.
It May Catch Your Attention: The Future of Bitcoin
Is Bitcoin or Gold More Protected?
Which is a more protected being is a matter of great debate from person to person. The curiosity for gold, which has come from the past to the present, has recently left its place to Bitcoin. The fact that the Bitcoin system is on the blockchain is that its main purpose is to be a decentralized and highly reliable structure. In a digitalized world, online transactions make people who do not know uneasy. The cold wallet comes to the fore as a solution in this one-to-one solution to protect yourself against hackers.
A Bitcoin cold storage is an offline wallet account that allows Bitcoin and its derivatives to be kept secure. Unlike hot wallets, cold wallets that do not have a connection to the internet cannot be hacked. In fact, we have the chance to keep the Bitcoin we bought from digital with us thanks to this product.
Gold, on the other hand, has been used for many years to obtain from banks and jewelers can be kept in our bank account or with us. But the main issue is the difference between the two is that in any transaction on the gold side, the possibility of being defrauded on the gold side is very high and there is definitely an intermediary in between. On the Bitcoin side, all transactions belong to the user first-hand, including storage, so bitcoin makes itself much more reliable and protected under it.
Distribution of Bitcoin and Gold Growth by Year
Looking at the charts, it is seen that gold (gram gold) has increased steadily between years. On the Bitcoin side, it appeared in 2009. With a rapid price increase, the price of gold outpaced very quickly. The fact that it is newer here makes itself a constant fluctuation of the price range but shows very high profitability for long-term investors such as gold.
